When you're on the bad side of the deal. See ripped off.
That $500 guitar was a rip off. I strummed it once and all the strings broke off!
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1.) When an object's true value is perceived as much less than the seller's asking value.
2.) Someone who participates in the act.
3.) Cleverly-concealed plagiarism, with just enough changes to get past others' legal rights.
1.) Have you seen the prices of a Mac Pro? What a rip off. I could buy two equally-powerful PCs for that much.
2.) The Great Giana Sisters is just a rip off of Super Mario Bros.